Prepare a budgeted classified balance sheet at December 31, 2022. (List Current Assets in order of liquidity.)

Lily Industries' balance sheet at December 31, 2021, is presented below. LILY INDUSTRIES Balance Sheet December 31, 2021 Assets Current Assets Cash $8,250 Accounts receivable 80,850 Finished goods inventory (1,650 26,400 units) Total current assets 115,500 Property, Plant, and Equipment Equipment Less: Accumulated depreciation 33,000 Total assets $148,500 $27,500 49,500 77,000 71.500 $148,500 Liabilities $44,000 11,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $44,000 27,500 Budgeted data for the year 2022 include the following. 2022 Quarter 4 Total Sales budget (9,400 units at $32) $90,240 $300,800 Direct materials used 18,700 68,750 Direct labor 13,750 55,990 Manufacturing overhead applied 11,000 53,460 Selling and administrative expenses 19,800 82,500 To meet sales requirements and to have 2,750 units of finished goods on hand at December 31, 2022, the production budget shows 9,900 required units of output. The total unit cost of production is expected to be $18. Lily uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,850 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $8,800 cash dividend. The company's cash budget shows an expected cash balance of $27,704 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $9,900. $4,550 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Lily expects to pay $8,800 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,850, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $7,920. Unpaid income taxes at December 31 will be $5,500. Prepare a budgeted statement of cost of goods sold. Finished Goods Inventory, 1/1/22 Cost of Goods Manufactured Direct Materials Used Direct Labor Manufacturing Overhead Applied Cost of Goods Available For Sale Finished Goods Inventory, 12/31/22 Cost of Goods Sold LILY INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2022 $ 68750 55990 53460 to 26400 178200 204600 -49500 155100 Solution :- Sales Revenue (9400 units X $32) Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations. Interest Expense Income before Income Taxes Income Tax Expense (20% x $59,350) Net Income /(Loss) LILY INDUSTRIES. Budgeted Income Statement For the Year Ended becember 31, 2022 $300,800 $/55,/00 $145,700 $82,500 $63,200 $3,850 $59,350 $11,870 $47,480 Prepare a retained earnings statement for 2022. (List items that increase retained earnings first.) LILY INDUSTRIES Budgeted Retained Earnings Statement For the Year Ending December 31, 2022 Retained Earnings, 1/1/22 27,500 Add : Net Income/ (Loss) 47480 74980 Less Dividends -8800 i Retained Earnings, 12/31/22 66180 >